Interim Results for the six months to 30 June 2023

Valereum PLC
03 October 2023
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR")

 

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3 October 2023

Valereum Plc

("Valereum" or the "Company")

 

Interim results for the six months to 30 June 2023

 

Valereum announces its interim results for the six-month period ended 30 June 2023. Shareholders are reminded that these results are unaudited and based on the Company's management accounts.

 

The first half of 2023 has been a challenging period for the Company, not least with its fundraising, set against a deteriorating global macroeconomic backdrop and uncertainty in the global financial markets. The committed funding secured from a US based fund as announced on 31 August 2023 is dependent on the US based fund closing its own round of finance which we understand is concluding at present.

 

Valereum's entire management team is focused on completing the Gibraltar Stock Exchange ("GSX") acquisition and is in further discussions with the GFSC around its application and request for a further extension. Although a successful conclusion with the GFSC is not guaranteed, the board of Valereum is optimistic and looks forward to announcing its plans and executing them in future.

 

Interim Operational Highlights

 

1)   On 31 March, Valereum confirmed that it had raised a total of £70,500 from the issue of 11,280 new ordinary shares of 0.0001 pence in its subsidiary Valereum Collections Ltd at a price of £6.25 per share. Valereum owns 99.8% of Valereum Collections Ltd.

2)   On 21 April, the Company announced it had sold its Bitcoin mining assets to Vinanz Ltd ("Vinanz") for a total consideration of 27,325,171 shares in Vinanz. These shares have an asset value to Valereum of around £800,000 (valued at Vinanz's listing price of 3p per share) and are subject to a 12-month lock-in.

3)   On 25 May, the Company announced that it had signed an option agreement to purchase Sparta Ltd, a licensed company service provider in Gibraltar which specialises in company formation and management. The option will not be exercised until the Gibraltar Financial Services Commission ("GFSC") approve the acquisition of Sparta.

4)   On 21 July, the Company announced that the payment for the second tranche of the GSX providing 100% ownership had been agreed at £750,000.

5)   On 31 August, the Company announced that it had secured committed funding from a United States fund in the amount of £5-8 million, to be released in two tranches. The GFSC accordingly extended the deadline for completion of the acquisition of the GSX to 28th September 2023. The Company and the current owners of the GSX (GSX Group Limited) are in negotiation with the GFSC on an extension of this deadline. Given Valereum is a willing buyer, working in close cooperation with a willing seller, the Company sees no reason for the GFSC not to grant an extension at present.

6)   On 31 August, the Company's shares were suspended by the Aquis Exchange. When the GSX acquisition is fully approved and completed, a new admission document will be submitted.

 

Interim Financial Highlights

 

1)   During the first half of 2023, the Company issued a total of 17,420,420 new ordinary shares of 0.1 pence each following the receipt of conversion notices for a total of $1.2 million.

2)   The Company cash balance on 30th June 2023 was £5,718 (31st December 2022: £92,528).

 

 

The Directors of the Company accept responsibility for the contents of this announcement.

END

Enquiries:

 

Valereum Plc

Richard Poulden, Chairman

Tel: +971 4584 6284

 

AQSE Corporate Adviser

First Sentinel Corporate Finance

Brian Stockbridge

Tel: +44 (0) 7858 888 007

 

Investor Relations

J&H Communications Limited

George Hudson

Tel: +44 (0)7803 603130

george@j-hcommunications.com

 

For more information, please visit the Company's website at valereum.gi

Valereum Plc



 

Statement of Total Comprehensive Income



 

for the six months ended 30 June 2023



 










 

 



 6 Months Ended

 6 Months Ended

 12 Months Ended


30 June 2023

30 June 2022

31 December 2022


 £

 £

 £





Revenue

                       -  

                       -  

                         -  





Cost of sales

                       -  

                       -  

                         -  





Gross profit

                       -  

                       -  

                         -  





Administration expenses

              (639,675)

           (1,031,309)

(4,277,717)





Operating loss

              (639,675)

           (1,031,309)

              (4,277,717)





Foreign exchange gain/(loss)

                  1,766

                 (2,609)

1,536

Interest expense

                       -  

                       -  

0

Interest income

                 13,281

                       -  

31,021





Loss on ordinary activities before taxation

              (624,627)

           (1,033,918)

              (4,245,160)





Tax on loss on ordinary activities

                       -  

                       -  

                         -  





Loss for the financial period

              (624,627)

           (1,033,918)

              (4,245,160)





Loss for the year from discontinued operations

                       -  

                       -  

                         -  





Retained loss for the financial period

              (624,627)

           (1,033,918)

              (4,245,160)





Change in foreign currency

                       -  

                       -  

                         -  





Other comprehensive income




Items that may not be reclassified subsequently to profit or loss:



Unrealised gain/loss on crypto assets

               161,770

                 43,532

-23,677

Other comprehensive income for the year/period

               161,770

                 43,532

-23,677





Total comprehensive loss for the financial period

              (462,857)

              (990,386)

              (4,268,837)

 

Valereum Plc



 

Statement of Financial Position



 

as at 30 June 2023



 


 

 



6 Months Ended

6 Months Ended

12 Months Ended


30 June 2023

30 June 2022

31 December 2022


£

£

£





Current assets



 

Trade and other receivables

               238,633

               332,331

274,352

Cash and cash equivalents

                  5,718

               656,405

92,528


               244,350

               988,736

                 366,880





Non-current assets



 

Property, plant and equipment

                       -  

                 84,626

61,010

Intangible assets

                       -  

               129,488

62,280

Investments

            1,023,251

            2,964,501

750,000


            1,023,251

            3,178,615

                 873,290





Total assets

            1,267,601

            4,167,351

               1,240,170





Current liabilities

            1,465,865

            2,462,751

1,946,556





Capital and reserves



 

Share capital

            4,148,640

            4,126,094

4,131,220

Share premium

           23,842,357

           22,250,459

22,888,797

Revaluation reserve

                 62,280

                 85,957

62,280

Translation reserve

               257,478

               257,478

257,478

Share based payment reserve

               377,500

               153,500

377,500

Retained earnings

          (28,886,520)

          (25,168,887)

(28,423,661)


              (198,264)

            1,704,601

                (706,386)





Total equity and liabilities

            1,267,601

            4,167,351

               1,240,170



 

Valereum Plc



 

Statement of Cash Flows



 

for the six months ended 30 June 2023





 

 



 6 Months Ended

 Six Months Ended

12 Months Ended


30 June 2023

30 June 2022

31 December 2022


£

£

£

Cash flows from operating activities

 

 

 

Loss before tax

              (462,857)

              (990,386)

              (4,268,837)

Reconciliation to cash generated from operations:




Foreign exchange (gain)/loss

                       -  

                       -  

                         -  

Purchase of Equipment

                       -  

                       -  

                         -  

Operating cash flow before changes in working capital

              (462,857)

              (990,386)

              (4,268,837)

Unrealised loss/(gain) on crypto

              (161,770)

                (43,532)

                   23,677

Share-based payments expense

                       -  

                       -  

                 224,000

Impairment of investments



               2,214,501

Depreciation

                 11,808

                 23,617

                   47,233

Decrease/(increase) in receivables

                 35,719

                       -  

                   57,979

Increase/(decrease) in payables

              (480,691)

            2,237,803

               1,721,608

Cash outflow from operations

           (1,057,791)

            1,227,502

                   20,161





Cash flows from financing activities




Issue of shares for cash

               970,980

               184,026

                 827,490





Net cash flow from financing activities

               970,980

               184,026

                 827,490

 




Cash flows from investing activities




Payment for acquisition of property, plant and equipment

                       -  

                       -  

                         -  

Payment for acquisition of investments

                       -  

           (2,187,500)

              (2,187,500)

 




Net cash flow from investing activities

                       -  

           (2,187,500)

              (2,187,500)





Net increase/(decrease) in cash

                (86,811)

              (775,972)

              (1,339,849)

Effects of exchange rates on cash and cash equivalents

                       -  

                       -  

                         -  


                (86,811)

              (775,972)

              (1,339,849)

Cash at bank at beginning of period

                 92,528

            1,432,377

               1,432,377

Cash at bank at period end

                  5,717

               656,405

                   92,528

 

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